Mortgage Refinancing Rush Continues Into New Year

Proposal could save homeowners $85B annually

(NEWSER) - Help could be on the way for struggling homeowners with government-backed mortgages: The Obama administration is considering a proposal that would allow such homeowners to refinance their mortgages at today's interest rates, which hover around a low 4%. Many homeowners can’t currently refinance because they owe more than their house’s current value or have poor credit. Such a move could impact millions of homeowners and save them an estimated $85 billion a year, thus stimulating the economy by freeing up that money to be spent in other areas, the New York Times notes. More»

Demand for refinancing shrivels as 30-year rates hit 5.75%

(NEWSER) - The steady rise in interest rates over recent weeks is threatening to trample the green shoots of recovery in the housing market, the Wall Street Journal reports. Rates on 30-year mortgages hit 5.79% yesterday, more than a point above the 4.75% "trigger" level analysts say spurred the wave of refinancing central to the White House's stimulus plans. More»

(NEWSER) - The country’s top lenders are slowly implementing the Obama administration’s plan to help otherwise ineligible borrowers to refinance their mortgages at the current bargain-basement rates, the Wall Street Journal reports. The program is open to those with mortgages owned by Freddie Mac or Fannie Mae who are current on their payments, but who owe 80-105% of their home’s value. More»

Citi drops opposition to Senate proposal

(NEWSER) - A Senate plan to help struggling homeowners keep their houses moved closer to fruition yesterday as Citigroup ended its opposition to the bill, the Wall Street Journal reports. The measure would allow so-called “cramdowns,” in which judges in Chapter 13 bankruptcy cases could set lower principal and interest rates, or extend the terms of loans. Citi has changed its stance after receiving $45 billion in government aid in the fall. More»

Analysts attribute dip to slackening economy

(NEWSER) - Rates for 30-year fixed mortgages have slipped for the third week in a row. The dip to 6.24% is the lowest level since May. Mortgage rates have been falling across the board over the last week, which analysts attribute to the slackening economy. The drop follows the Fed's cut in interest rates last week—the second one in six weeks. More»